What happened
According to a report by Dawn, the government has reduced the price of petrol by Rs3.93 per litre, bringing the retail rate to Rs386.30 per litre. The price of high-speed diesel (HSD) remains unchanged at Rs396.96 per litre.
A Petroleum Division notification indicates that the new rates are effective from Saturday, October 17, through Monday, October 19. The government continues to collect Rs114 per litre in duties and taxes on petrol, as well as Rs100 per litre on diesel.
Key facts
- Fuel prices previously reached record highs on April 3, with petrol peaking at Rs458.41 per litre and HSD reaching Rs520.35 per litre following price hikes triggered by the outbreak of the US-Iran war on February 28.
- On July 17, Petroleum Minister Ali Pervaiz Malik announced that the cabinet and prime minister assigned the Oil and Gas Regulatory Authority (Ogra) to set daily fuel prices based on global trends. Prior to this, prices were adjusted weekly starting in early March.
- In response to rising international oil costs during the Middle East conflict, the government reinstated austerity steps, including early market closures at 9pm and a 50 percent cut in fuel allocations for official vehicles over three months.
- Prime Minister Shehbaz Sharif announced a targeted relief initiative on September 13 to assist owners of motorcycles, rickshaws, and vehicles under 800cc.
Why it matters
As noted by Dawn, petrol price adjustments directly impact lower-middle and middle-class consumers who rely on two-wheelers, rickshaws, and small passenger cars. Meanwhile, diesel price shifts affect the broader economy because the fuel is used extensively in commercial transport, heavy power generators, and energy generation.
Both petrol and HSD are crucial revenue sources for the state, driving monthly sales between 700,000 and 800,000 tonnes, compared to a monthly demand of roughly 10,000 tonnes for kerosene.
Source: Dawn - Home · Published October 16, 2026 · Photo by 0xk on Unsplash